Why ITC share price is down today? What's behind the stock plunge? Trigger and data details here

Despite a muted trend in the Indian stock market, ITC shares witnessed strong buying during the early morning session on Tuesday. ITC share price today opened upside at ₹261.50 per share on the NSE and touched an intraday high of ₹267.50 within a few minutes, logging an intraday rise of over 4%. The FMCG stock came under the radar of Dalal Street bulls after its wholly owned subsidiary ITC Infotech, declared to acquire 22.106% share capital of Happiest Minds Technologies Limited on Monday.

ITC Infotech-Happiest Minds acquisition details

ITC informed about the board approval to acquire Happiest Minds Technologies Limited share capital by its subsidiary ITC Infotech Ltd in an exchange filing on Monday, saying, “We have been advised by ITC Infotech India Limited (‘ITC Infotech’), a wholly owned subsidiary, that its Board of Directors at the meeting held today has, inter alia, approved: a] acquisition of 3,36,61,700 equity shares of Happiest Minds Technologies Limited (‘HMTL’), representing 22.106% of its equity share capital (on a fully diluted basis), from HMTL’s promoter / promoter group, Mr. Ashok Soota and Ashok Soota Medical Research LLP, and b] amalgamation of HMTL with and into ITC Infotech.”

The proposed transaction has also been endorsed by the Board of Directors of ITC Limited.

ITC Infotech-Happiest Minds Technologies amalgamation details

Providing details of the amalgamation, the ITC exchange filing said, “Upon the amalgamation, referred to in (b) above, becoming effective — ITC Infotech shall issue and allot 25 fully paid-up equity shares of Rs. 10/- (Rupees Ten only) each of ITC Infotech for every 81 fully paid-up equity shares of Rs. 2/- (Rupees Two only) each held by the shareholders of HMTL (other than ITC Infotech), as on the Record Date.”

The shares of ITC Infotech are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited.

The aforesaid acquisition and amalgamation are subject to the terms and conditions set out in the Transaction Documents and also receipt of necessary statutory & other approvals, including approvals from the Stock Exchanges, Competition Commission of India, and National Company Law Tribunal.

ITC share price history

ITC shares have shed over 7.50% in one month, over 15% in six months, over 25% in YTD, and around 35% in one year.

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